Punjab And Sind Bank vs Sidhartha Buildhome Private Limited

IN THE MATTER OF: Devendra Singh ...Appellant Versus Homebuyers of Sidhartha Buildhome Pvt. Ltd. & Ors. ...Respondents

Present: For Applicant : Mr. Sanjay Bajaj, Mr. Shivam Takkar, Advocates for Applicant in IA No.3206 of 2025. For Respondents : Mr. Kanishk Khetan, Advocate for R-1. Ms. Ekta Choudhay, Ms. Rushali, Mr. Ayush Kumar, Mr. Rajat Singh, Advocates for R-2 (PNB). Mr. Sumant Batra, M Mr. Sarthak Bhandari, Ms. Riya Kaur Arora, Mr. Saurav Rajpal, Mr. Shiv Mangal Sharma, Mr. Abhishek Sharma, Advocates for R-3. Mr. Sandeep Bhuraria, Ms. Vaishnavi Prakash, Advocates for Applicant in I.A. Nos.5449, 5450 of 2025 (SRA).

With

Company Appeal (AT) (Insolvency) No. 1041 of 2025

IN THE MATTER OF: Punjab & Sind Bank ...Appellant Versus Sidhartha Buildhome Pvt. Ltd. ...Respondents

Present: For Appellant : Mr. Sanjay Bajaj, Mr. Shivam Takkar, Advocates. For Respondents :

Cont'd..../ ORDER

(Hybrid Mode)

09.09.2025: Application I.A. No.3206 of 2025 has been filed by the

Punjab and Sind Bank in Company Appeal (AT) (Ins.) No.791 of 2023 which

was decided by our judgment and order dated 16.02.2024 as subsequently

corrected on 22.07.2024 and clarified on 02.05.2025. The Corporate Debtor

- Sidhartha Buildhome Pvt. Ltd. was put into CIRP by order of the

Adjudicating Authority dated 04.03.2021. Subsequently, a 12A application

was allowed on 24.05.2023, against which Company Appeal (AT) (Ins.)

Nos.1194 of 2023, 291 of 2023 and 982 of 2023 were filed. This Tribunal vide

judgment dated 16.02.2024 allowed the Company Appeal and issued

following directions in Para 40:

"40. In view of the foregoing discussions and our conclusion, we decide all these appeals in following manner:-

(i) Company Appeal (AT) (Insolvency) Nos. 791 and 982 of 2023 are allowed. The order dated 24.05.2023 passed by the Adjudicating Authority in IA No. 753 of 2023 is set aside. I.A. No.753 of 2023 is dismissed.

(ii) CIRP of the Corporate Debtor- Sidhartha Buildhome Pvt. Ltd. is revived which proceeding shall confine to Project Estella.

(iii) The Project NCR Green be kept out of the CIRP which henceforth commences. The promoter/director is solely responsible to complete and handover all units of the Project

I.A. No. 3206 of 2025 in Comp. App. (AT) (Ins.) No.791 of 2023 with Comp. Appl. (AT) (Ins.) No.1041 of 2025 2 of 7 NCR Green to the unit holders and in event there is any failure on the part of the Respondent No.4 to handover the units to all unit holders, it shall be open for the Financial Creditors in class to make an application before the Adjudicating Authority for appropriate relief including relief of revival of CIRP with regard to NCR Green Project also.

(iv) The Resolution Professional shall issue fresh Form G with regard to Estella Project and complete the CIRP within a period of 90 days from the date of issuance of Form G. Resolution Professional before issuing Form G with regard to Estella Project shall constitute the CoC for the Project Estella and proceed further as per decision of the CoC so constituted."

2. In the judgment dated 16.02.2024, this Tribunal noticing the

submissions of the parties including those of Promoters in Paras 36, 37 and

38 observed following:

"36. From the facts which have been brought on the record, it is clear that after the order dated 24.05.2023 was passed by the Adjudicating Authority allowing 12A proposal, the Respondent No.4 proceeded as per the proposal under 12A and has carried out certain works as detailed in Additional Affidavit. It has further been submitted that all units pertaining to Project NCR Green shall be ready and shall be handed over by end of February. We are of the view that the Project NCR Green being almost complete, the said project need to be kept out of CIRP. However, Respondent No.4 shall

I.A. No. 3206 of 2025 in Comp. App. (AT) (Ins.) No.791 of 2023 with Comp. Appl. (AT) (Ins.) No.1041 of 2025 3 of 7 be entirely responsible for handing over units to each and every unit holder of NCR Green Project.

37. We having already held that the order dated 24.05.2023 is unsustainable. The proposal under Section 12A having not been approved by 90% vote share of the CoC, the order dated 24.05.2023 has to be set aside reviving the CIRP of the Corporate Debtor.

38. Learned Counsel for the Respondent has relied on judgment of this Tribunal in Company Appeal (AT) (Insolvency) No. 926 of 2019- "Flat Buyers Association Winter Hills vs. Umang Realtech Private Limited through IRP & Ors." where this Tribunal has directed for reverse CIRP in facts and circumstances of the said case. We are also of the view that in the present case, the CIRP of the Corporate Debtor be revived and be confined to the Estella Project. Let the Resolution Professional constitute the CoC for the Estella Project. Taking in the CoC the homebuyers of Estella Project, the Financial Creditors- Punjab National Bank and Punjab & Sind Bank shall also be part of the CoC. We permit the Resolution Professional to issue fresh Form- G with regard to Estella Project and complete the CIRP process within a period of 90 days from the date of issuance of Form G."

3. The effect of the order of this Tribunal was that CIRP of the Corporate

Debtor was revived and was confined to project Estella. By subsequent

correction on 22.07.2024, in the Estella project Financial Creditor - Punjab

National Bank was held to be part of the CoC and Punjab and Sind Bank was

not part of the CoC.

I.A. No. 3206 of 2025 in Comp. App. (AT) (Ins.) No.791 of 2023 with Comp. Appl. (AT) (Ins.) No.1041 of 2025 4 of 7

4. Company Appeal (AT) (Ins.) No.1041 of 2025 was filed by the Punjab

and Sind Bank challenging the order dated 22.05.2022 passed by the

Adjudicating Authority in Section 7 application being C.P. (IB) 647/ND/2024.

The Adjudicating Authority disposed of the Section 7 application noticing the

CIRP against the Corporate Debtor has already commenced, against which

order the appeals have been decided by this Tribunal, as noted above.

Aggrieved by the order refusing to admit Section 7 application appeal has been

filed by Punjab and Sind Bank.

5. Learned counsel for the Applicant- Punjab and Sind Bank submits that

Applicant is not part of the CoC of Project Estella with regard to which CIRP,

direction was issued to proceed, in which CIRP, Resolution Plan has already

been approved by the CoC and pending for consideration before the

Adjudicating Authority with regard to project Estella, for which CIRP was

directed to continue. Learned counsel for the Applicant submits that the

Applicant is Financial Creditor of the Corporate Debtor which finance was

used for project NCR Green and Applicant is sole Financial Creditor of project

NCR Green apart from creditors in class and there is no Occupancy Certificate

issued in NCR Green project.

6. Learned counsel for the Resolution Professional also submits that there

is no Occupancy Certificate with regard to NCR Green.

7. Shri Sumant Batra, learned counsel has appeared for the Promoter and

submits that Promoter has also infused substantial funds in NCR Green

which has been noticed by this Tribunal in earlier orders.

I.A. No. 3206 of 2025 in Comp. App. (AT) (Ins.) No.791 of 2023 with Comp. Appl. (AT) (Ins.) No.1041 of 2025 5 of 7

8. After having heard learned counsel for the parties, in so far as appeal

filed by Punjab and Sind Bank, we are of the view that CIRP having already

commenced against the Corporate Debtor, which CIRP is still in process, the

Adjudicating Authority did not commit any error in not admitting another

CIRP application filed by the Punjab and Sind Bank claiming to the Financial

Creditor of one of the project of the Corporate Debtor. We, thus, do not find

any error in the order warranting any interference in the order of the

Adjudicating on appeal filed by the Punjab and Sind Bank. However, we are

of the view that Applicant is entitled to seek directions as prayed in I.A.

No.3206 of 2025.

9. The project-wise CIRP with respect to a real estate company has already

been noticed by this Tribunal in Para 38 of the judgment dated 16.02.2024,

as noted above. The CIRP Regulations, 2016 as amended also envisages

project-wise resolution in a real estate company. As per earlier order, we have

directed resolution of one project Estella. Project NRC Green in which Punjab

and Sind Bank claims to be Financial Creditor is still unfinished. We, thus

are of the view that Resolution Professional is free to proceed with the CIRP of

Project NCR Green and issue Information Memorandum and Form G and

proceed further in accordance with I&B Code and CIRP Regulations, 2016.

10. Learned counsel for the Promoter submits that they having infused

substantial funds in the project NCR Green, the said amount in question shall

need to be considered by the CoC to be treated as interim finance or not.

I.A. No. 3206 of 2025 in Comp. App. (AT) (Ins.) No.791 of 2023 with Comp. Appl. (AT) (Ins.) No.1041 of 2025 6 of 7

11. Learned counsel for the Resolution Professional submits that in so far

as project Estella is concerned, Resolution Plan has already pending for

consideration before the Adjudicating Authority. We are of the view that in

these Application or appeal we are not required to consider any issues arising

of the Resolution Plan, which is pending before the Adjudicating Authority. It

is for the Adjudicating Authority to consider all objections and take a decision.

12. In view of the aforesaid, we dispose of I.A. No.3206 of 2025, as above in

Para 9 and Company Appeal (AT) (Ins.) 1041 of 2025 is dismissed.

13. We further clarify that with regard to Resolution Plan, it shall be open

for all concerned to file their objections. The Adjudicating Authority shall

consider as to whether Form G was issued with regard to one project (Estella)

or entire Corporate Debtor.

14. We having already passed orders deciding the Appeals including

correction and clarification, no further orders are required.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

I.A. No. 3206 of 2025 in Comp. App. (AT) (Ins.) No.791 of 2023 with Comp. Appl. (AT) (Ins.) No.1041 of 2025 7 of 7